American Manganese to Initiate New IP Development and Mini-Pilot Plant to Advance Cathode Recycling Technology

December 20, 2017

Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc., (TSX.V: AMY; OTC US: AMYZF; FSE: 2AM) (“AMI” or the “Company”) is pleased to report the Company has received the “New IP (“Intellectual Property”) Development and Mini-Pilot Plant” proposal from Kemetco Research.The proposal’s objectives are as follows:

Develop new IP using information identified in the previous work that would streamline the overall process further, by eliminating by-product production and reduce equipment requirements.

Develop new IP to recover graphite from the anode materials.

Develop new IP to recover copper and aluminum foils.

Design, engineer and construct a mini-pilot plant.

Operate the pilot plant to obtain scale-up data and test customer materials in a practical manner.

The total budget for the above program in 2018, has been estimated to cost $2,277,000.00.

“AMI’s successes this past year are an indication that 2018 will continue to be impressive as future development unfold.” said Mr. Reaugh.

The proposal was prepared by Norm Chow, Anca Nacu and Randy Agius of Kemetco Research.Mr. Chow and Dr. Nacu are co-inventors of the AMI cathode recycling patent applications, which are 100% owned by AMI.Mr. Agius has been Kemetco’s metallurgical lab manager since 2016.Mr. Agius has over 45 years of professional experience in the mining industry, starting with 32 years at INCO, where he was involved in commissioning and operation of a cobalt refinery in Port Colborne, Ontario.In addition, Mr. Agius is a pioneer in the INCO SO2/Air process for cyanide destruction.In 2006, Mr. Agius established a consulting firm through which he personally designed, commissioned, and installed over 65 SO2/Air cyanide detox plants worldwide.Mr. Agius experience will be invaluable in advancing the technology towards commercialization as utilization of SO2 is of key importance to the AMI cathode recycling technology.

Cobalt prices have increased significantly from approximately $23,000 USD per metric tonne in 2015 to just under $72,500 USD per metric tonne today (www.infomine.com).Two years ago, AMI recognized that the electric vehicle revolution coupled with the inelastic supply of mined raw materials for lithium-ion batteries, in particular cobalt, would lead to opportunities in recycling (see AMI press release dated August 19, 2015).Since that time, AMI has been aggressively adapting its patented hydrometallurgical processing technology originally developed for recovering manganese from lower grade resources.After completing an extensive bench scale test program and developing flowsheets that successfully recycled cathode materials of different chemistries to recover 100% base metals (cobalt, nickel and manganese) and 100% lithium, non-provisional US and PCT patent applications were filed in November 2017.

AMI expects to initiate the next phase of work in January 2018 and will continue its plan of developing a strong intellectual property portfolio and advance its cathode recycling technology towards commercialization.AMI believes that recycling will play an important role in the future supply chain of raw materials for lithium-ion batteries and aims to capitalize on this opportunity.Recently, recycling of lithium-ion battery raw materials has been gaining international attention in the business community.See the following articles in Bloomberg and Reuters:

About Kemetco Research Inc.Kemetco Research is a private sector integrated science, technology and innovation company. Their Contract Sciences operation provides laboratory analysis and testing, field work, bench scale studies, pilot plant investigations, consulting services, applied research and development for both industry and government. Their clients range from start-up companies developing new technologies through to large multinational corporations with proven processes.

Kemetco provides scientific expertise in the fields of Specialty Analytical Chemistry, Chemical Process and Extractive Metallurgy. Because Kemetco carries out research in many different fields, it is able to offer a broader range of backgrounds and expertise than most laboratories.

About American Manganese Inc.American Manganese Inc. is a diversified specialty and critical metal company focused on capitalizing on its patented intellectual property through low cost production or recovery of electrolytic manganese products throughout the world, and recycling of spent electric vehicle lithium-ion rechargeable batteries.

Interest in the Company’s patented process has adjusted the focus of American Manganese Inc. toward the examination of applying its patented technology for other purposes and materials.American Manganese Inc. aims to capitalize on its patented technology and proprietary know-how to become and industry leader in the recycling of spent electric vehicle lithium-ion batteries having cathode chemistries such as:Lithium-Cobalt, Lithium-Cobalt-Nickel-Manganese, and Lithium-Manganese (Please see the Company’s January 27, 2017 press release for further details).

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.